"The Ford and GM 2Q prints were exact opposites," stated Johnson. Ford reported not only an earnings miss, but a guidance warning as well, while General Motors beat earnings estimates significantly while raising guidance.
In both China and Europe, GM outperformed Ford against estimates significantly as well.
Although the Barclays analyst appreciated Ford's more "realistic industry outlook" and commitment to its dividend, he concluded General Motors would make it "somewhat better positioned" in the near future.
General Motor's Difference
Relative to Ford, General motors "has a more favourable product cycle, has been quicker to capture self-help opportunities (to offset regional pressures), and is exposed to the faster-growing lower end of the China market," according to Johnson.
Ford also has more excess inventory across a number of models in the United States, forcing Ford to lower prices as the company works through its inventory.
Both Are Outperformers, However
Despite Ford's shortcomings, Johnson believes Ford and GM "will be relative outperformers for now, not only vs. suppliers, but also potentially against other large cap dividend names."
At time of writing, Ford traded at $12.43, down 1.82 percent Monday, while GM was trading at $31.30, down 0.78 percent.
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